Assume a firm has the following cost and revenue characteristics at its current level of output: price=$8.00 . average variable cost=$6.00 and average fixed cost =$4.00 . In the long run, the firm
a. Should shut-down as its making a loss of $2
b. Should continue operating as long as it is covering the variable costs of $6
c. Should continue operating as long as it is covering the fixed costs of $4
d. Should not shut down
a
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If the Commerce Department adjusts the growth rate of GDP downward for the first quarter of 2016, and the Bureau of Labor Statistics adjusts the number of hours worked upward for the first quarter of 2016, what will the Bureau of Labor Statistics do
in terms of revising the figures on the growth rate of labor productivity for the first quarter of 2016? A) The BLS will not change the growth rate of productivity. B) The BLS will adjust the growth rate downwards. C) The BLS will adjust the growth rate upwards. D) The BLS will adjust the level of labor productivity upward and the growth rate downward.
Incentive goods are
a. manufactured goods for consumption by farmers b. manufactured inputs for farm production c. agricultural goods that can be sold in the cities d. agricultural goods that are left for consumption in the rural areas e. none of the above
What's the firm's contribution margin?
a. $15 b. $18 c. $3 d. $4
If 20 smoothies are sold at a market price of $5.50 each, then
a. there must not be an excess supply of smoothies b. selling the 21st smoothie would be a Pareto improvement c. the market must be perfectly competitive d. the value to some individual of the 20th smoothie is $5.50 e. there must be an excess demand for smoothies